Shareholders of MTN Nigeria have approved a major restructuring of the company’s digital financial services business, paving the way for a N152.06 billion transaction that will see the telecom operator reduce its controlling stake in its fintech subsidiaries.
MTN Nigeria
The approval was granted at the company’s Annual General Meeting held on April 30, through Resolution 9.
Under the arrangement, shareholders endorsed the transfer of a 60 per cent stake in MoMo Payment Service Bank Limited and Y’ello Digital Financial Services Limited to MTN Group Fintech B.V.
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The transaction will involve fresh capital injection by the MTN Group fintech subsidiary, alongside the acquisition of shares from MTN Nigeria through a combination of primary and secondary investments.
Following completion of the deal, both entities are expected to consolidate their interests under a newly created holding company to be registered with the Central Bank of Nigeria (CBN).
The company said the move is aimed at streamlining regulatory oversight and positioning the fintech operations for future investments and expansion.
The restructuring represents a strategic shift for MTN Nigeria, effectively transferring a greater share of financial and operational responsibility for the fintech business to the parent company.
Industry analysts say the development aligns with the MTN Group’s “Ambition 2030” strategy, which prioritises expansion of digital and financial services across its operating markets.
MTN Nigeria acknowledged that its fintech subsidiaries are currently loss-making, reflecting the significant capital requirements associated with building and scaling digital payment infrastructure.
The company said the restructuring would reduce MTN Nigeria’s direct exposure to the capital demands of the fintech business, allowing it to concentrate more resources on strengthening its telecommunications infrastructure.
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It added that the fintech arm would benefit from stronger financial backing to accelerate growth and scale operations.
According to the company, the proposed holding company structure is also expected to improve investment flexibility and attract strategic investors.
This, it said, would support expansion into key areas including rural market penetration, merchant acquisition and broader digital payments adoption.
